South Korea’s Hyundai is getting into the heavy truck market through a $400 million JV with Baotou Bei Ben Heavy-Duty Truck, China’s sixth largest heavy truck maker. Hyundai aims to be selling 100,000 heavy-duty trucks in China by 2014 and will take over Baotou’s manufacturing operations next year with a goal of raising current production of 40,000 vehicles a year to 100,000 by 2014, by when it will have revamped the model line based on Hyundai’s existing vehicles.
The stimulus inflated infrastructure and real estate building booms have spurred demand for construction equipment. China now accounts for 29% of the world market. Hyundai is getting in ahead of most other foreign auto makers. The South Korean group, which includes Kia, is the world’s fifth largest vehicle maker and already builds cars in China with Beijing Automotive. Baotou is also Beijing-based. Hyundai says it eventually plans to sell a full range of commercial vehicles, though its previous attempts to do so have been star-crossed. Earlier JVs with Jianghuai Automobile in 2004 and with Guangzhou Automobile in 2005 fell apart.